Gemfields turns focus to high quality assets as it withdraws from Coscuez and Sri Lanka

Gemfields turns focus to high quality assets as it withdraws from Coscuez and Sri Lanka - 8:30 12 May 2017

Gemfield is making improvements to operational efficiencies and cutting operating costs at its Kagem mine in Zambia.

Gemfields plc (LON:GEM) has decided to focus on opportunities that will deliver “considerably higher returns” as it withdraws from its Coscuez emerald mine transaction in Colombia and in operations in Sri Lanka.

The company said will turn its attention to its portfolio of high quality assets in Africa and potential expansion opportunities in Zambia, Mozambique and Ethiopia.

The decision to withdraw from its Coscuez followed an internal review. In 2015, Esmeracol S.A transferred the Coscuez emerald mine licence into a newly incorporated company, Coscuez New Co, in which Gemfields bought a 70% indirect stake

“Gemfields and its prospective project partner, New-Esmeracol S.A. made the joint decision to withdraw from the Coscuez transaction on the grounds that not all of the conditions precedent to the existing share purchase agreement were able to be satisfied within the stipulated timeframe,” the company explained.

In Sri Lanka, the company has decided not to progress operations after a review found more potential for expansion opportunities in other jurisdictions.